Gold slipped on Tuesday as risk appetite revived in global financial markets, lifting equities, but the precious metal was not far off a six-week high hit overnight as investors remained cautious over political tensions between Russia and the West.
Spot gold was down 0.68 percent at $1,343.86 per ounce at 3:52 p.m. EST, after touching $1,356.66 earlier in the session, its highest since Feb. 16. U.S. gold futures for April settled down $13, or 1 percent, to $1,342 per ounce.
Stock markets jumped in response to reports the United States and China were negotiating to avert a trade war and this dented the appeal of gold, seen as a safe haven.
The dollar edged up versus a currency basket — making dollar priced gold costlier for non-U.S. investors — though it was not far off a five week low hit earlier as returning risk appetite dented investor appetite for the U.S. currency.